Menko Airlangga: Indonesian Economy Demonstrates Strong Performance and Investment Opportunities

INTI- In his statement, Coordinating Minister for Economic Affairs, Airlangga Hartarto, highlighted the positive performance of Indonesia's economy in 2022, characterized by high resilience, controlled inflation, and low recession risks. Indonesia achieved a growth rate of 5.31%, the second highest among G20 countries, following Saudi Arabia. "International financial institutions such as the International Monetary Fund (IMF) have praised Indonesia's above-average economic growth, considering the global economic uncertainties," stated Menko Airlangga. These economic achievements were realized amidst a challenging global landscape.

Regarding the energy transition sector, Indonesia recognizes significant investment prospects from the United States through the Partnership for Global Infrastructure and Investment (PGII). "As widely known, PGII has announced a commitment of USD 600 billion in investment for sustainable infrastructure projects, with a specific focus on developing countries," expressed Menko Airlangga. He also expressed optimism about Indonesia's appeal as an investment destination for energy transition, exemplified by Citi Group's launch of a USD 400 million green bond to expand the green energy sector, particularly geothermal energy, in Indonesia.

During the G20 Summit in Bali, two crucial announcements were made concerning Indonesia's energy transition. Firstly, the United States, Japan, the United Kingdom, France, Germany, Italy, Canada, Denmark, Norway, and the European Union, as members of the International Partner Group (IPG) and other parties, committed to investing USD 20 billion, equivalent to IDR 300 trillion, to support Indonesia's energy transition. Secondly, the United States announced a joint project in the US-Indonesia partnership aimed at positioning Indonesia as the pioneering country in the ASEAN market for Small Modular Reactor (SMR) applications, utilizing safe and reliable technology from the American company, NuScale Power.

Richard Adkerson, CEO of Freeport-McMoRan, expressed interest in Indonesia's stance on global climate change issues and stated that Freeport-McMoRan is also committed to reducing greenhouse gas emissions. "Within its operational activities, PT Freeport Indonesia in Papua has actively contributed to reducing its greenhouse gas emissions," affirmed Richard Adkerson. In response, Menko Airlangga emphasized Indonesia's commitment to achieving the Net Zero Emission target by 2060. The impressive national economic growth must be aligned with ensuring an adequate energy supply for the people.

In his closing remarks, the President of the American Indonesian Chamber of Commerce (AICC) expressed confidence in Indonesia's current economy and anticipated that the business climate in Indonesia will become increasingly attractive to American investors and other countries in the future. ***. Hans